CNBC says that about half of all renters in the United States are rent-burdened, spending 30% or more on their rent per month. As such, rent collection has become somewhat tricky for landlords and investors renting out their properties.
How can you improve rent collection? One of the best ways is to streamline the process. Improving rent collection includes:
- Accepting late payment
- Improving communication
- Providing reminders
- Creating an online portal
- Allowing tenants to pay in different ways
If you're looking for property management tips for rent collection, we're here to help. Here are the five best practices to streamline your Houston rent collection.
1. Accept Late Payment
Late payments provide a huge hassle to both the tenant and the rent collector. For the tenant, a late payment also comes with anxiety, late fees, and the fear of being penalized. For the rent collector, they may not be able to pay their bills until they have their tenant's money.
Accepting late payment when possible is one of the best ways to streamline your collection. Giving that leniency to your tenants not only helps them live without the fear of penalty but also allows you to collect at your own rate.
2. Improve Communication
Another good way to streamline your rent collection is to improve your communication. Provide your tenants with different ways to get in touch with you to alleviate their worries.
One good way to do so is with an online portal. Keeping regular hours for phone calls and promptly answering emails will also help.
3. Provide Reminders
Life gets busy, and your tenants are working hard to be able to afford the rent. According to KXAN, Texans work longer hours than workers in the rest of the states.
With so much going on, it's easy to let bills slip out of attention. Provide your tenants with a week's advance notice that rent is coming up to make sure they don't forget.
4. Allow Online Portals
With life being so busy, it's hard for tenants to physically come to pay their rent. You can alleviate this problem by providing your tenants with online portals.
By doing so, you let them pay from the comfort of their home and they can pay instantly. It'll not only make things easier for them, but it'll also help you receive payment properly.
5. Offer Different Payment Methods
Finally, you should offer a variety of payment methods to your tenants. Paying in cash, by check, through debit cards, and anything else you're equipped to take are all great methods. That way, your tenants are able to pay in the way that most fits them, streamlining the process.
Mastering Rent Collection
Rent collection is easiest when you have late payment solutions and focus on great tenant communication. Consider sending rent-due reminders and allowing them to pay the way that best suits them without anxiety or penalty.
At PMI Fine Properties, we're equipped with the latest technology to keep you informed on your investments. We're happy to provide services for tenant screening, rent collection, and more. Contact us to see how we can improve your business.
